Repeated Data Breaches and Firm Value

This study explores the nature and consequences of repeated data breaches. We find that second-time data breaches hurt firm values more than first-time breaches, and we fail to observe any effect on firm values for subsequent repeated breaches. Moreover, if a breached firm replaces its CEO after the first breach, the following repeated breaches will not hurt its firm value anymore, which provides practical implications for firms on how to prevent the following damages after the first breach. Lastly, we find that financial data breaches decrease firm values more than any other breach type